Zecon’s share price fall 6.84% on action against JKR

PETALING JAYA: Zecon Bhd fell 6.84% to 35 sen this morning after the company obtained an injunction from the Kuala Lumpur High Court to restrain the Public Works Department (JKR) from making a claim or receiving RM24.75 million bank guarantee proceeds.

At 11.19am, the stock was trading at 35 sen with 437,700 shares done.

Last Friday’s injunction comes on the heels of Zecon's announcement on Wednesday, that it had received a notice of termination dated Aug 2 from JKR for the contract to build a 300-bed hospital located in Petra Jaya, Kuching.

The RM495 million contract is one of the government hospital and clinic projects nationwide that the Health Ministry had slotted for termination, due to failure to complete within the stipulated time frame.

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